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GERMAN TESTIMONY.

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GERMAN TESTIMONY. The German Empire has in one respect paid jthe British policy of Free Trade the compli- ment of imitation, which is proverbially the sincerest form of flattery. Germans have a healthy ambition to acquire a great uu.. chant fleet. On general principle they are Protec- tionists. They heavily protect their agricul- ture, at the cost of making the food of the masses of the people about one-fifth dearer than it is in this country. They protect their manufactures as heavily in proportion. But they make one notable exception. The,, admit free of Tariff duty all imported foreign materials, whether raw or manufactured, which are to be used in shipbuilding. Thereby they admit that, whether Free .Trade be wise or unwise in regard to their tnland industries, it is the only wise policy for the creation of a merchant shipping fleet which is intended to earn and pay its way in the face of the world's competition. AMERICAN EXPERIENCE. A greater nation than even Germany—the United States, namely-has given similar testimony to us, which if unwilling is equally valuable. The States ought to have a mer- chant fleet as great as ours, considering their material resources and the energies and abili- ties of their people. In the earlier part of last century the probabilities seemed to be that they would run us a neck-and-neck race towards the chief position in the ocean carrying trade. So lately as 1860 they owned 2,500,000 tons of ocean shipping to our 4,500,000 tons. Since then their tonnage has continuously diminished, whilst ours has grown. Now they have less than 1,000,000 tons, whilst we have 11,500,000 tons. Why is this American decrease, against so vast an in- crease on our side? Americans themselves admit that the reason why is their system of Protection. Steel plate and other shipbuild- ing essentials are so thoroughly protected, in the interests of the Steel Trust and other organisations of shortsighted selfishness, that a first-class merchant steamer costs them tc build at least 40 per cent. more than it costs us in this country. Of course, they have tc charge freightage rates proportionately higher. The result is that British ships carry, and earn freights upon, the great bulk of American imports and exports, not only as between the States and this country, but as between the States and all the rest of the world. HALF THE WORLD'S SHIPPING BRITISH. According to the most recent statistics, the total steamship tonnage owned by all nations is about 19,250,000 tons. Of this the United Kingdom owned rather more than 9,500,000 tons being nearly equal to that owned by all other countries, including the British Colonies. If we include sailing; ships as well as Bteamers, then the total ownership in the United Kingdom is 11,250,000 tons, as com- pared with 14,500,000 tons for all other countries. Sailing ships, as most people are aware, become fewer every year in proportion to steamers. For carrying purposes, each steam ton is equal to three sail tOlls-b, reason, of course, of the greater speed and certainty of steam. Next to the British ownership of 11,250,000 tons steam and sail, the largest figure for one country is the German ownership of 2,500,000 tOM-less than one quarter of the British tonnage. On the other hand, th< German tonnage is nearly three times as great as that of the United States. Seeing that the popu- lation of the States is one third larger than that of Germany, and that the natural re- sources of the States exceed those of Ger- many in a far greater proportion, one would presume that the ocean preponderance as be- tween the two ought to be the other way. The one probable explanatior of the facts is that Germany pursues a Fret Trade policy at least as regards shipbuilding, whilst the States are Protectionist; and, also, that in other matters than shipbuilding, Germany, though Protectionist, is less strenuously so than the United States It must be noied that the actual British predominance i.n ocean truffle is more decided than the foregoing figures indicate, because British shipping is, on the average, newer and more efficient than that owned by other countries. British ship-owners every year sell second-hand to foreign owners numbers of vessels which have seen a few years' ser- vice; and the66 second-hands are replaced by the up-to-date ships which, as every news- paper reader is aware, tend constantly to be .bigger and faster than their predecessors. TWO-THIRDS OF THE WORLD'S SHIPBUILDING BRITISH. Of course, this country also builds and Bells to foreign owners new vessels as well as second-hand. As we build all the vessels we need for our own use, and sell to other conn- tries besides, it follows that British pre- •dominance in shipbuilding is even more marked than in ehipowning. The most recent statistics shew the new ships built in all countries to total about 3,250,000 tons per annum; of which the British shipyards pro- duce nearly 2,000,000 tons. That is, two- thirds of all the ships in the world are British-built. THE GAINS FROM SHIPPING: A PRO- TECTIONIST PUZZLE EXPLAINED. How much per annum ie earned for British capitalists and workers by these 11,2D0,0v0 tons of shipping? Sir Robert Giffen estimates that British snips' earnings may fairly be reckoned at £ 12 per ton per annum for steam- ships and P.4 per ton for sailing ships. Applying these figures to the tonnages already stated, and making allowances ior severer competition and lower freights since the official inquiries, it is clear that the total earnings of British shipping may be put roughly and roundly at £ 100,000,000 sterling per annum; being equal to C2 5s. per annum for each man, woman, and child in titi United Kingdom. Now, this £ 100,000,000 earned by BritisL shipping goes far to explain a puzzle windt .greatly troubles the minds of our pro- tectionists. They point to the fact tnat ae- cording to the Board of Trade returns year after year the value of all the goods imported into the United Kingdom (gold included) is at least £ 150,000,000 per annum more than the value of all the goods that are exported {gold included). How is that? they ask. One part of this apparent balance against ua: of £ 100,000,000 per annum is explained by the circumstance that many hundred millionfi sterling of British capital are invested in foreign countries and in British territories beyond seas; and the interest thereupon comes to us in the shape of imported merchandise, which has not to be paid f°r j- corresponding exports or merchandise. The other part of the supposed adverse balance is covered by our shipping earnings. In'fact, the £ 100;000,000 per annum earned by our shipping amounts to the same thing, pecuniarily, as if we exported another £ 100,000,000 pei annum worth of merchan- dise. The overwhelming bulk, both of our imports and exports, are carried in British ships. As regards the value of the merchan- dise imported, the figures given by the Board i -of Trade include not only the original coat price, but also the charges for ship freight Since these charges are paid to British ship- owners, it is obvious that the charges have not to be met by exports of other British commodities. Again, as regards the value of the merchandise exported, the Board of Trade figures do not include the cost of the shipping freightage. Nevertheless, that freightage also has to be paid to British ship- owners. But ultimately it is charged to and paid by the foreign purchasers of our ex- ports. They pay by sending us goods which, of course, are reckoned along with our other imports. Thus, the whole earnings of our shipping, about £ 100,000,000 per annum as stated, come to us as part of the total imports of merchandise recorded in the Board of Trade returns. And thus the Protectionist vision of a huge ever-growing adverse balance of trade d«i>t dibappoirs like the vision it 18. I

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